Are Bank’s Interest Rates Guaranteed?
When you see these high interest rate APY’s for these online savings banks, you might be wondering whether these rates are guaranteed. They’re not. The reality is that unless you’ve locked into a Certificate of Deposit, there isn’t any other account where the rate is guaranteed for any period of time. If you walk into your brick and mortar bank, the savings account rates and checking account rates aren’t fixed either.
But that’s OK. The fact is online banks are fighting each other for business and will always have the highest rates because they have the lowest overhead. If you don’t have to pay tellers and you don’t have to pay managers and you don’t have to pay rent on a building, you can pay your depositors higher interest rates.
So, rest assured that your money is getting the best rates possible when you pick a high yield savings account, even if it isn’t guaranteed.